A DEAL IN SACKS

Wanganui Chronicle, Volume LXXXII, Issue 19437, 24 October 1925, Page 8

A DEAL IN SACKS

LABOUR GOVERNMENT’S VENTURE i LOSS OF £12,500 SECRECY CRITICISED SYDNEY, Oct. 23. Documents tabled in Assembly disclosed details of the Government transaction in corn sacks whereby the State lost £12,500. The purchase was made in July last at Its fid per doken and the sacks were resold at 12s 9d. The official papers showed that as the farmers had suffered in the previous year through the high price of sacks and were expecting a bumper harvest of 60,000,000 bushels this year, Mr Dunn, Minister of Agriculture, decided to purchase a supply to prevent farmers against having to pay such a high price. Steps were taken to prevent the transaction leaking out, so as not to effect the market, and the sacks were purchased through a private agent. Unfortunately, dry weather militated against the harbest prospects for wheat, bringing the estimated yield down to 30,000,000 bushels. This caused an unexpected break in the jute market and prices fell with the prospect of further fall. Upon this happening it was decided to sell a portion of the sacks already delivered at the best price obtainable and to cancel the rest of the contract. Yesterday Mr Cavin made a strong attack on the Government regarding the secrecy and other circumstances Connected with the purchase and sale, and asked the Premier to appoint a Royal Commission of Inquiry, failing which other means might be necesssary. Mr Lang, in agreeing to appoint a commission, denied that there was anything fishy about the business. The Minister had consulted him and he had advised him to cut the loss. Mr Dunn explained . that he knew very little about the jute business, and had therefore obtained the services of an experienced man, a personal friend whom he could absolutely trusj. He had acted in the interests of farmers and if anybody could prove that he had even as much as a cigar out of the transaction he would go right out of Parliament and not come back.